Video Age International June-July 2008

BY LEAH HOCHBAUMROSNER As for the past several years, this June, two New York television-related events will, once again, capture the attention of executives in the licensing, programming, marketing and promotions worlds. First comes the 28th annual Licensing International Expo, a threeday conference for merchandising rights holders that will be held June 10-12. Then, after just enough time to dry clean your best suit, on June 17, comes the 53rd edition of Promax/BDA, which touts itself as the world’s largest marketing conference. Since they’re both held in New York City and both are TVrelated, it seems natural that Licensing and Promax would attract a good portion of the same audience — but in reality they draw mostly different crowds (despite the fact that many trade publications will hit both events and some program distribution people will be peeking into both shows). Either way, the dollar’s plummeting value ensures that each of these events will draw a hefty contingent of foreigners. In effect, the dollar weakness is compensating for the shows’ weaknesses. For Promax, the crisis started during the chairmanship of Londoner Glynn Brailsford around the year 2000, and for the Licensing Show, with the various changes implemented by Advanstar Global Licensing Group, the show organizer on behalf of the International Licensing Industry Merchandisers’ Association (LIMA). “Europeans, especially, have a lot of spending power now,” said Steven Ekstract, group publisher for License! Global Magazine , mentioning that BBC Worldwide and Hit Entertainment are just a couple of the many Europe-based firms that will be exhibiting at the Expo. “Europeans love going to New York to shop, anyway,” he said with a laugh. “This event gives them the perfect excuse to come here.” Licensing International Expo, which will be held in the hard-to-reach Jacob K. Javits Convention Center, features 600 exhibitors, representing more than 6,000 properties for consumer products in categories including corporate brands, sports, publishing, lifestyle, and of course, entertainment. Reps from Hollywood studios, publishing giants and designers will be on hand to introduce their products to the 25,000 attendees from 82 countries that’ll be present at the Expo. Ekstract believes that, “From an entertainment licensing point of view, Disney is on fire right now,” he said, noting the soaring popularity of such properties as Hannah Montanaand High School Musical as well as good advanced buzz for WALL-E, an animated film about a lonely robot due out later this year, and Toy Story 3, which is slated for release in 2010. “Disney tends to avoid over-licensing movie properties,” said Ekstract, noting that the Mouse House often adopts a wait-and-see approach to see how films perform before doing the licensing. “With Cars , for example, they waited to see how it would fare,” said Ekstract. “It turned out to be a really big hit, and the licensing, in turn, performed really well.” Another entertainment powerhouse that should receive ample attention, according to Ekstract, is Warner Bros., which is dusting off its Looney Tunes series. “It’s a classic property,” said Ekstract, mentioning that with children’s series, older shows are evergreen since there’s always a new audience. “Classic properties always do well from a licensing perspective.” Ekstract also expects big licensing things from Yo Gabba Gabba! , a series from San Francisco, California-based Wild Brain that airs on Nickelodeon in the U.S. The show, which has been described as a bizarrely appealing mixture of club music and edgy animation, has become a big hit. “It came out of nowhere to become a ratings juggernaut,” he said. “It’s getting great buzz in the licensing world.” Bella Sara, a hot new property for girls from Granada Ventures, should also generate news. In addition to doing business, Expo attendees will be able to attend a slew of licensing-related conferences. Sessions include “Licensing Valuation & Royalty Rate Trends,” “Case Studies of Successful Licensing Programs,” “Basic Training for First Time Licensees” and “How to Maximize Your Brand Presence and Penetrate the Potential Chinese Market via Hong Kong.” Asked whether he believes that the Licensing Expo, which directly precedes Promax, will cross-pollinate, Ekstract responded that, “Promax is for promotions guys who create on-air promos and Licensing is for licensees and retailers.” Jonathan Block-Verk, president of Promax/BDA, which will be held June 17-19 at the Hilton New York Hotel, concurred: “There really isn’t an overlapping clientele with Licensing,” he said. Regardless, the devaluation of the dollar, which is bringing a global audience to Licensing, should also bring in a much-needed international constituency to Promax. And another result of the U.S. recession is that BlockVerk and company have decided to change things up a little this year. “We’re really reaching out to local [U.S. and foreign radio and TV] stations and creating incentives for them to come,” he said. “We’re tailoring a lot of the content for them.” In the past, the presence of local radio and TV outlets harnessed Promax’s strength. In fact, a number of sessions are specifically geared towards increasing local stations’ bottom lines. “Breaking the News” will give local stations advice on how to immediately increase revenues. “One State, Two State, Red State, Blue State: New Approaches to Election Promotion” will introduce election-coverage marketing strategies since the U.S. presidential election will be held this year. And “The DTV Transition Symposium: Ratings, Revenues and Repercussions of the Digital Television Switchover” is aimed at the thousands of local stations that will be most impacted by the impending DTV switchover. Another thing Block-Verk hopes will boost Promax’s profile in this recession era, is that the NBC, ABC and CBS TV networks are holding their affiliate meetings in conjunction with Promax. In the past, this particular activity not only brought energy to Promax, but added prestige. Last year’s coup was a keynote speech delivered by former president Bill Clinton. This year’s speechmakers are a shade less high profile. “Clinton was a big get,” said Block-Verk, “but this year, we’re focusing on attendees and their fundamental business concerns.” Despite this, there will be a few familiar faces among the attendees at Promax. Civil rights leader Reverend Jesse Jackson will be on hand to discuss the blurred line between news and entertainment and the impact that has on global culture. James Lipton of Bravo’s Inside the Actors Studiowill host “Inside the Design Studio,” conducting interviews with some of the world’s most accomplished branding and design artists. Michael Klein, president of Hustler TV, will participate in a panel discussion entitled “Q&A on T&A: Insights into Marketing Adult Entertainment,” which will reveal the ins and outs of marketing an industry that generates over $1 billion a year in subscription and on-demand revenue. And Vince McMahon from the WWE will receive a Lifetime Achievement Award recognizing the wrestling impresario’s contribution to the global TV industry, as well as his prowess in marketing the pseudo-sport. Last year’s Promax/BDA event drew over 3,500 attendees from around the globe, including more than 700 local station executives from over 150 TV markets in the U.S. Block-Verk expects similar numbers this year. “We want our attendees to walk away with fresh new ideas that will immediately build their bottom line and generate new revenues,” he said. “We want them to be informed and inspired.” However, despite all the best efforts, the basic structural problems of both organizations remain. Many execs believe that Licensing should seek another firm to structure its event — one more attuned to the show-business nature of the industry, such as ReedMidem, perhaps. And Promax is said to be in need of a more highprofile management that’s active in all aspects of the U.S. and international entertainment business, specifically with a presence at the major international TV trade shows. V I D E O • A G E JU N E 2 0 0 8 32 N e w Y o r k , N . Y Promax and Licensing: So Unhappy Together Promax’s Jonathan Block-Verk Licensing’s Steven Ekstract

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